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FTX Starts Creditor Repayment Under New Reorganization Plan
FTX has commenced creditor repayment under its approved reorganization plan, marking a significant milestone in the process of addressing the fallout from the exchange’s bankruptcy. The repayment will be carried out by the new entity established under Chapter 11 proceedings, with the goal of providing fair and transparent compensation to creditors.
As part of this endeavor, FTX has designated a Plan Administrator who will oversee the distribution of funds to creditors. This administrator is responsible for managing claims reserves, ensuring compliance with the approved reorganization plan, and facilitating distributions as outlined in the agreement.
FTX’s bankruptcy filing last year was followed by an intense reorganization process, which culminated in the approval of a new reorganization plan. The proposed arrangement aimed to provide a framework for addressing debts owed to various parties, including investors, traders, and others affected by the exchange’s collapse.
Notably, FTX has issued warnings about potential phishing attempts targeting creditors, emphasizing the importance of using the official Customer Portal to file claims and access distribution services securely. This move serves as a reminder of the importance of vigilance in the face of financial uncertainty and fraud risks.
As the reorganization process unfolds, FTX is working diligently to resolve disputes and finalize additional payments to creditors. The exchange’s Chapter 11 plan represents one of the final stages in addressing the consequences of its bankruptcy, with executives facing legal consequences for their roles in the collapse.
(Crypto News Land)
Source: cryptonewsland.com
